Question

The table right shows the demand schedule for denim Compute the price lily of demand be points and The Demand Schedule for Denim Jeans Point OA 2017 OB 0.420 OC 23510 OD 4200 OE 2381 B с D Price (per unit) 30 35 40 45 50 55 50 45 Quy Demanded per year 400 000 330 000 350 000 320,000 300.000 250.000 230.000 190.000 F G

Answer 1

At G, price=60 and quantity demanded=230000

At H, price=65 and Quantity demanded=190000

Avg. Price=62.5 and quantity demanded=210000

elasticity of demand=Change in Q/change in price*(Avg. price/Avg. quantity)

elasticity of demand=-40000/5*62.5/210000=-2.38096

ans is E